Interim budget 2014: Government plans to boost financial markets

To deepen financial markets, the government on Monday proposed to overhaul the norms governing issuing of foreign-listed securities by Indian firms and said steps would be taken to boost corporate bond and currency derivative segments.. . The government would "comprehensively revamp the American depository receipt (ADR) and global depository receipt (GDR) scheme and enlarge the scope of depository receipts," Finance Minister P Chidambaram said in his interim budget speech.. . (Read: All you want to know about interim budget 2014 | full speech ). . Besides, the government would take a number of steps to strengthen and deepen the country's corporate bond as well as currency derivatives market.. . The incentives are primarily meant for attracting retail and high-net worth (HNI) investors towards this segment and are aimed at helping India Inc raise long-term funds in a cost-effective manner.. . Though India has a very advanced G-sec (government securities) market, the corporate bond market is relatively under-developed.. . Corporate bonds are debt securities issued by private and public corporations. Companies issue corporate bonds to raise money for a variety of purposes, such as building a new plant, purchasing equipment, or growing business.. . Mr Chidambaram said the government would "enable smoother clearing and settlement for international investors looking to invest in Indian bonds".. . He stated that steps would be taken to strengthen the currency derivatives market enabling Indian companies to fully hedge against foreign currency risks.. . The government and capital market regulator Securities and Exchange Board of India (Sebi) have taken some steps to check speculation in the currency market. . . The Finance Minister said the government would create "one record for all financial assets of every individual".

Interim budget 2014: Government plans to boost financial markets

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